Machine learning is the study of all the computer algorithms which can improve itself in an automated manner as and when required through various experiences, it is analysed as the sub-division of artificial intelligence.
Machine learning comes in various forms right from supervised learning, unsupervised learning or any other form of learning.
The scope of the blog gets much lower and the technical details are just prefacing the eCommerce based solutions and all the other discussions as they analyze the diversified use of machine learning which can be put to use while driving cars, performing facial recognition, and even identifying the car’s license plate from CCTV footage.
In E-commerce integration, we need to analyze the behavioral patterns of the customers which help the business owners in providing and conducting predictive analysis and making proactive decisions which get driven by data.
O yes. Let’s dig this topic a little deeper
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Recommendation Engine
One of the biggest reasons which can be the biggest reason behind the success of Amazon and how it crashed and cut down its competitors in the overall E-commerce industry.
All thanks to Machine Learning .. o yes the entire recommendation engine works entirely depending upon it.
The recommendation engine takes into consideration the behavioral patterns of the user which were analysed in the past as training data and then learning the different trends and patterns.
After making millions of records of the purchasing power and preferences of the customers along with the profiles, the system can easily predict how new users end up browsing the website and what kind of products they are interested into, depending upon the browsing habits, the items which were added in the cart and what people with similar profiles have done this in the past.
Whether the predictions and suggestions which were provided delivered the fruitful results or whether the algorithm still needs improvisation.
The full recommendation engine is also similar to the framework you find during the checkout at the same grocery store which generally contains candy, gums, and even magazines.
It also acts as a chance to make a reminder of the items or products which the customers are looking forward to buying but they forgot about it or something complementary popped up in between.
The more accurate the recommendations appear for the shoppers the more they engage themselves with the site and continue the purchase of the products happily.
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Price Optimization
Another area where Machine Learning assists the E-commerce website is providing a great deal in assisting with the business team for price optimization.
All the prices of the products will keep on getting fluctuated. The pricing engine can be taken into consideration which provides great deals of information from the profile of the shoppers, current trends, and much more which are of high value to the business owner.
The catalog includes hundreds and millions of products along with different variants and with a wide range of factors which are to be the most affecting factors and the business owners can easily ensure how quickly it becomes infeasible for the humans to perform such tasks with full focus and coverage.
By proper implementation of machine learning to retrieve the pricing on all the catalogs of the products, E-commerce stores can easily unlock the massive competitive advantage.
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Retargeting, Discounts and Upsells
Shoppers never purchase a product in a single go, they browse the items for a while, add them onto the cart, and sometimes leave them unpurchased.
Here Machine Learning plays a very crucial role in minimizing the number of uncompleted transactions. As ML works on recording and analyzing the historic data of similar user profiles. Retargeting campaigns can be supercharged through ML, which can help reach out to the customers who have just browsed your inventory or abandoned a cart.
Even in some cases, the promotional ads on Facebook or Instagram, offering attractive discounts on products that are already in the cart may work well to crack the deal.
However, all this can be done smoothly by using the data through ML. As ML analyzes hundreds of millions of data of such users, their habits, and outcomes. Hence it can predict the best workable solution to convert a potential customer into permanent ones.
The last Lines
There are very few tricks and techniques which can be taken into consideration by the E-commerce giants whether it is Walmart or Amazon and even more number of stores are making their new moves in the industry and more stores are opening up on a daily basis.
With the available tools such as Google’s AutoML and in the same manner from Amazon, Microsoft, and other technical giants, Machine Learning can no longer be the scary black box and how it was earlier and it is the perfect time to catch the machine learning flight before it flies away.
Author’s Bio
James Vargas is an experienced business expert, startup business consultant, assistance in trademark registration, Shopping Cart Development, and marketing head at getting Everything Delivered. With the 1.5-decade corporate experience, he is now sharing his guidance to start-ups to grow with corporate team building activities and project delivery solutions.